Transport Minister Barbara Creecy, with the concurrence of the Minister of Finance, has approved a R51 billion guarantee facility for Transnet in a major step aimed at stabilising the embattled state-owned freight and logistics company.
The facility is effective immediately and is intended to support Transnet’s capital investment programme and assist it in meeting debt obligations.
Transnet, seen as a vital cog in South Africa’s economic machinery, is undergoing sweeping reforms to improve operational performance, governance, and financial sustainability. According to the Department of Transport, this guarantee comes at a critical time as Transnet works to rebuild its rail and port infrastructure and restore investor confidence.
The financial support includes R41 billion for funding requirements for the 2025/26 and 2026/27 financial years, and a R10 billion liquidity guarantee for managing maturing debt and key capital projects.
“Government recognises the central role Transnet plays in enabling inclusive economic growth,” Minister Creecy said. “This guarantee shows our commitment to ensuring Transnet is equipped to meet both its short-term needs and long-term strategic role.”
In the 2024/25 financial year, Transnet moved 161 million tonnes of freight across its rail network. The release of the 2024/25 Network Statement in December 2024 opened the door for private sector participation, with successful bidder announcements expected by July 2025.
In March, the Department of Transport issued a Request for Information (RFI) for private investment on five key freight corridors and ports. The RFI closes on 31 May, with Requests for Proposals (RFPs) set to follow in September.
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This latest guarantee builds on the R47 billion support facility granted in December 2023, which enabled Transnet to execute its Recovery Plan, ramping up capital investment and improving liquidity over the past two years.
The guarantee is tied to strict conditions outlined in a Guarantee Framework Agreement between the Department of Transport and National Treasury.
Transnet’s ability to draw on the funds will depend on meeting operational targets and aligning with the national Freight Logistics Roadmap.
Minister Creecy remains confident that this additional support will help steer Transnet toward stability and improved efficiency, paving the way for stronger public-private collaboration in the logistics sector.
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